The process of building your new home requires plenty of careful planning. There are many things to consider, from how much storage space you need to whether or not the house will meet your family’s long-term needs. Some buyers believe they can rely on the builder’s sales agent to provide information during construction. However, this can be problematic because the agent works for the builder, not you.
Identifying the Right Builder
While many home builders require buyers to use their preferred lender and title company, real estate agents can help find lenders willing to work with new construction. It could save you thousands in loan closing costs. Agents also understand the nuances of builder contracts and can help ensure that all closing fees are accurately reflected in the agreement. They can also help you negotiate beneficial terms, like better warranty coverage or more inclusions in the builder’s standard features. Some homebuilders even set aside funds from poor artistry or building materials for legal claims. By resolving issues before they become problems, an experienced home builder sales brokerage can assist you in avoiding these circumstances.
Educating You on the Building Process
Real estate brokers who specialize in new construction homes have a unique set of skills. They are often familiar with the nuances of the builder’s contract and can help clarify language that could be misleading. They can also tell you if the developer’s contract has clauses that can result in cost escalation. They can also recommend a lender who may be able to offer you better terms than the builder’s preferred lender. A broker can also help you navigate the progress reports that builders send out to buyers. It can save you a lot of time and frustration, as it helps you keep track of the overall progress.
Negotiating the Price
There is room to negotiate in new construction, but buyers should realize that builders want to maximize their price points. They also need to sell homes quickly because they are building in phases. Chipping away at the price of new construction will slow the sale process down and devalue the product in the long run.
Look for homes that are already finished and move-in ready. It will make builders more willing to negotiate since they clearly understand the break-even point. Buyers can also take advantage of the end of the year when many builders are approaching their sales quotas.
Choosing the Floor Plan
The home-building process can be lengthy. Real estate agents specializing in new construction can help keep you updated on what’s happening during the process. They can also provide information on cost breakdowns for features and labor costs. They can also help you choose the right floor plan based on your needs. You don’t want to pay for upgrades after the home has already been built. Talking to your agent about what you want in a new construction home before construction begins is a good idea. It will set everyone up for success.
Managing Your Finances
The relationship between the builder, real estate agent, and homebuyer can sometimes feel adversarial. However, a professional broker can help all parties work together for success. Most new construction homes are part of more prominent real estate development projects. Builder sales brokers must be knowledgeable about these projects and advocate for the builders they represent.
Additionally, builder sales agents often have quotas they need to meet for customer generation and other marketing activities. It can be difficult when working with resale homes, making it hard for new construction sales to occur quickly.
Keeping You Informed
Builders and their sales teams are only sometimes known for robust communication. Your real estate agent stays in touch with the builder, educates you on what to expect, and intervenes if deadlines are missed. To promote yourself as a broker, look for builders with new developments in the works and looking for brokers to sell their inventory. Some builders may already know you from previous home sales, or they might have seen your advertising, emails, or marketing. It is important to show consistency to get their attention. It will help you establish yourself as an expert in this area.